CAMDEN, N.J. – Jorge Fernandes, a 76-year-old man from West Orange, Essex County, pleaded guilty to failing to collect payroll taxes from his employees.
The charges were related to his ownership of two previously popular Newark restaurants, Iberia Tavern and Iberia Peninsula, and were announced on Friday by U.S. Attorney Philip R. Sellinger.
Fernandes was the 50% owner of these establishments, during which time he paid a number of employees “off the books,” thereby avoiding the collection of payroll taxes. His actions caused a total tax loss of $715,780 for the tax years 2016 through 2017.
Each count of failing to collect payroll taxes carries a maximum penalty of five years in prison and a $10,000 fine. Fernandes is scheduled for sentencing on Nov. 20.
The investigation leading to Fernandes’ guilty plea was conducted by special agents of the IRS – Criminal Investigation and the U.S. Department of Labor, Office of the Inspector General, Northeast Region.